Still Looking Good
On Monday, the Nasdaq gapped to multi-month highs and
initially traded higher but quickly began to sell off. Then after drifting sideways, it
resumed its sell off in the afternoon. This action has it closing poorly and
keeps it just below its 200-day
moving average.
The S&P ended lower after initially trading higher.
So what do we do? Even though Monday’s reversal suggests
we could be in for some corrective action, I remain generally positive towards
the market. The Nasdaq and many tech sectors (see recent archives) remains in a
fairly sharp uptrend. I’d feel even better if the S&P would come along for
the ride. But, I guess like Mick says, “you can’t always get what-cha want.” Once again, I haven’t completely forgotten about the short side.
The HMOs, mentioned recently, were hit pretty hard on Monday so most are now too
oversold to consider new positions. However, other areas of health services may
also be headed lower. Watch for new opportunities there.
Looking to potential setups, National Instruments
(
NATI |
Quote |
Chart |
News |
PowerRating),
in the strong computer peripherals sector (a), looks like it has the potential
to resume its strong uptrend out of a pullback.
Jabil Circuit
(
JBL |
Quote |
Chart |
News |
PowerRating), mentioned Friday and in the strong semis/printed circuit board sub-sector (a),
still looks poised to
continue its accelerated uptrend out of a pullback.
Best of luck with
your trading on Tuesday!
Dave Landry
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